Real Estate Tips

Sacramento Home Buyer Asks Good Question

August 18th, 2010 categories: Ask Gena, Real Estate Tips, Sacramento

This week I called home buyers who registered on Sacramento Real Estate Neighborhoods which is where home buyers search for homes for sale and get the latest MLS listings for sale on their email each day.

One of those phone calls to a potential home buyer brought up an interesting burning question that other home buyers might have…

Let’s call this home buyer, Ted. Ted said that he had been defeated earlier this year since he placed on offer on many homes and they always sold for more than the asking price.

Yes, Ted that did happen for many home buyers. It was called “supply and demand.” But, never fear, now with inventory high this is less likely to happen again to you.

Now for Ted’s BIG burning question…Ted said he was taking this time to save money for his down payment on a house since he only had 10% and was VERY concerned about having to pay mortgage insurance (PMI) for the DURATION of his mortgage loan. Note: This would have been a Conventional Loan.

PMI is extra insurance lenders require when a home buyer’s loan is for MORE than 80% of the appraised value of the house or condo the home buyer is purchasing. This is done just in case the home buyer defaults on their loan and protects the lender.

Ted WON’T have to pay PMI for the duration of a 30 year mortgage. First of all the value of the home Ted buys will increase in value. As soon as the appraised value of Ted’s home reaches that 80% mark either through home prices increasing or due to home improvements, Ted’s PMI will be eliminated. Ted wants to make sure however, that he does not take out an equity line of credit for those great home improvements. Otherwise his request to terminate the PMI might be rejected.

There is a caveat to eliminating PMI, the homeowner must be current on their home mortgage and not been delinquent. Most lender must eliminate PMI as soon as the borrower pays the loan balance down to 78% of the value. For those homeowners who are considered high risk, the elimination of PMI is automatic at 77% of the home value. Loan payments must be current.

Here is an example of when you may cancel your PMI

$200,000 Present Value of Your Mortgage

x 1.25

$250,000 Minimum Value Your House Must be to Cancel PMI

Of course, if the appraised value of your home exceeds $250,000 you should contact your lender immediately to have PMI removed.

For further information about your PMI, contact your lender directly. And if you are a Sacramento home buyer be sure to take a look at ALL Sacramento homes for sale at Sacramento Real Estate Neighborhoods and give me a call so we can get started finding YOU just the right home.

Authored by Gena Riede | Discussion: 3 Comments »

Sacramento Home Make-Over Tip

August 16th, 2010 categories: Real Estate Tips, Remodel

Many of the Sacramento home buyers recently bought Bank Owned, REO and Short Sale homes for sale this year. Some looked better than others and some were taken care of better than others.

I thought as your Sacramento Realtor, I would give a visual of some ideas that would give your home a make-over that will surprise even you.

As you can see there are 4 different garage doors each with a distinctive style. New garage doors can give your house a face lift that can make it look years younger! You need to be thoughtful in choosing the right garage door for the architecture of your home.

The top left garage door is a glass that comes in a variety of smoky colors lending light to the inside of the garage but not allowing others to see in. This type of garage door should only be used (in my opinion) on a home that is modern and has definite lines that will make this a true asset for the house.

The garage door top right resembles doors used on a barn (an expensive barn) and would look fabulous on many two story colonial homes.

The bottom two garage doors look spectacular on many of the Renaissance, Tuscan homes.

This is just one way home buyers who are now homeowners can spruce up and make your home, your castle.

Do You Know How to Maintain Your HOME?

June 16th, 2010 categories: Real Estate Tips

As a Sacramento Realtor, I know to have my heating and A/C serviced each year for proper maintenance. But, I assumed the company I paid each year did their job.

Hopefully, this article will help other homeowners to know just what should be done when a company you hire comes out to service and maintain your A/C unit.

For years I have called a X-company which serviced heat and air conditioning units to maintain my system. Thinking they knew their job and I was being a responsible homeowner, I paid for this service that was provided twice a year, once for the heat and once for the A/C.

Low and behold, my A/C was not cooling so I called the home warranty company since the past few years X-company had told me I was on borrowed time with an A/C unit that is only 10 years old.

The service company the home warranty folks from Fidelity National Home Warranty sent out noted I needed a new thermostat. While speaking with the service person and talking about how I have my A/C serviced each year and that it is on its last leg, the service person set me straight.

My A/C unit should last a good long time and no one has bothered to actually service the system correctly for years…how about yours? Do you know what a Heating and Air Conditioning company is suppose to do when they service and maintain your system? I didn’t!

What a flipping surprise! So, the $189 I paid to X- company was money down the drain since I have 10 years of debris on the back of the A/C condenser that was never vacuumed nor proper maintenance performed.

Today, I called X-company and asked what was included in their maintenance of an A/C unit for the yearly charge of $189. The company speaks in generalities and when you pin point them they say they have a 41 point check but when asked what ii includes in that 41 check they simply say it’s on the back of the invoice.

I tell you this so that you too, as a homeowner can become enlightened. If you are a Sacramento home buyer who purchased a Short Sale home for sale, or a bank owned home for sale or what many buyers refer to as foreclosed home, rest assured that the homeowner more than likely did not have the money to maintain their home properly so you need to. Start today, before the heat of the summer reaches the one hundred degrees. But know what SHOULD be done.

These are things that SHOULD be done for service and maintenance of your A/C. A typical maintenance check-up should include the following per the Energy Star Maintenance Checklist.

Check thermostat settings to ensure the cooling and heating system keeps you comfortable when you are home and saves energy while you are away.
Tighten all electrical connections and measure voltage and current on motors. Faulty electrical connections can cause unsafe operation of your system and reduce the life of major components.
Lubricate all moving parts. Parts that lack lubrication cause friction in motors and increases the amount of electricity you use.
Check and inspect the condensate drain in your central air conditioner, furnace and/or heat pump (when in cooling mode). A plugged drain can cause water damage in the house and affect indoor humidity levels.
Check controls of the system to ensure proper and safe operation. Check the starting cycle of the equipment to assure the system starts, operates, and shuts off proper
Clean evaporator and condenser air conditioning coils. Dirty coils reduce the system’s ability to cool your home and cause the system to run longer, increasing energy costs and reducing the life of the equipment.
Check your central air conditioner’s refrigerant level and adjust if necessary. Too much or too little refrigerant will make your system less efficient increasing energy costs and reducing the life of the equipment.
Clean and adjust blower components to provide proper system airflow for greater comfort levels. Airflow problems can reduce your system’s efficiency by up to 15 percent.

As a homeowner you should Clean/Change air filters once per month. A dirty filter can increase energy costs and damage your equipment as well as adding problems for those suffering from allergies.

Other Real Estate Tips from the Realtor:

Kitchen Tip That Can Save You Money

Kitchen Tip Everyone Needs to Read

Money Saving Tip For Homeowners

Don’t Wait Till It Costs You MORE!

Want to Know A Real Estate Tip to Save You Money?

Do You Want to Save Money?

Sacramento Homeowner and Home Buyer Yard Tip

How To Take Care of Your Home in the Winter

Authored by Gena Riede | Discussion: Comments »

What Makes A Good Home Buyer?

June 4th, 2010 categories: Real Estate Tips, Sacramento Real Estate Videos

When a Sacramento home buyer has taken the time to talk to a lender, provided the necessary documents required and understands their loan this tell me as a Sacramento Realtor ®3 essential things about this home buyer. To find out what those 3 important items are, listen to the video.

As a Sacramento Realtor ®, I only work with motivated, responsible home buyers that have stepped up and approached the home buying process correctly. I will help guide the home buyer to a reputable Lender if they haven’t started the process yet and once we have a Lender Approval letter, we are set to go and see all the homes for sale the home buyer chooses.

There are many reasons for the mortgage melt down we see today, with foreclosures and short sales. One of the reasons is due to many homeowners who never took the time to understand their mortgage loan BEFORE signing their loan documents. Don’t let that happen to you! Know and ask questions about your loan when you meet with the lender. Understand everything about the loan program. Loans are more than just the interest rate.

I’m always excited to help any home buyer that is willing to approach the home buying process in a responsible manner.

Authored by Gena Riede | Discussion: Comments »

Sacramento Realtor Tip

June 1st, 2010 categories: Real Estate Tips

Before leaving to show homes for sale in Folsom, I decided to turn my air conditioning on since it was a bit muggy.

I heard the motor of the condenser outside running but the temperature inside was not cooling down. Since my filter is always clean, that leads me to think the A/C has a definite problem and needs servicing.

Thank heavens the hottest time of the year is not underway. I have the feeling that my air conditioner is on borrowed time, being 10 years old and each year being maintained and serviced, I’ve been told that it’s only a matter of time before it goes out.

As a Sacramento Realtor, I know that having a home warranty plan is essential as well as maintaining the equipment in my home and rentals. So, I have called the home warranty for my home A/C unit and and await the call from the contractor for a home visit.

In the meantime, since I pay a yearly plan for maintenance of the heating and A/C, I will call to have one of the rental units serviced so that when the heat in the Sacramento area starts climbing in the 3 digits, my renters will be comfortable.

Be sure to clean those filters so you don’t pay more on your electric bill and cause your A/C units added stress. I can’t tell you how many homes I go into that have dirty filters which is not only wear and tear on the unit but very costly for the homeowner.

I share this with you as a Realtor, homeowner and investor since now is the time to get those A/C units serviced before the heating and air conditioning companies are inundated with emergencies later in the year. Nothing worse that not having cool air when the temperature soars to 105 degrees.

Authored by Gena Riede | Discussion: 2 Comments »

Elk Grove Realtor Shares Important Home Buyer Tip

May 7th, 2010 categories: Real Estate Tips, Sacramento

While showing homes for sale in Elk Grove to a home buyer, I thought it was important to let the home buyers know that the CA $10,000 home buyer tax credit does have some important issues to know and not take for granted. There is just so much money set aside for this home buyer tax credit that the state of California is offering and when the applications for this money run out, the money is gone!

Don’t wait to file your taxes next year or think this is something you can put off later. Once you receive the documents from the purchase of your home or condo, it’ is important to file your application and prove the purchase in the application process with the state so that you can qualify for the $10,000 CA home buyer tax credit.

Remember, the early bird gets the worm!

For those of you lucky enough to qualify for both the State and Federal home buyer tax credit, here are the links to the appropriate government sites to get the information and application forms.

Here is the legal links to the IRS http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Here is the State link http://www.ftb.ca.gov/individuals/New_Home_Credit.shtml

AB 183 when passed in California for CA home buyers allocates $200 million in tax credits. This money is broken into 2 categories, $100 million for first time homebuyers of existing homes and $100 million for new home sales. The tax credit is the lesser of 5% of the purchase price of the home or $10,000 in equal installments over 3 years.

You have 14 calendars after you close on your house to submit the application by fax along with your HUD statement you received at close of escrow. Will there be new homeowners who procrastinate and don’t get the necessary documents submitted in order to get the home buyer tax credit? YEP! It’s all up to you!!

For other home buyer tips be sure to read and watch:

Sacramento Home Buyers Find Homes in Multiple Offers

You Can’t Be a Toast Watcher and Buy A Short Sale

Sacramento Home Buyer Tip

Authored by Gena Riede | Discussion: 2 Comments »

Only 3 Days Left For Home Buyers!

April 27th, 2010 categories: Real Estate Tips

Sacramento home buyers have only 3 days left to qualify for both the Federal and State Tax Credit which combined equal $18,000. Not too shabby!

It’s important that you realize that in order to qualify for both, you must have been accepted with what we call a ratified contract by the seller and escrow open in order to qualify for the Federal Tax Credit of $8,000.

The $10,000 does not start until May 1st so it’s important not to close until after May 1st in order to have this State Tax Credit combine with the Federal Tax Credit.

One of my home buyers was accepted last month and was suppose to close April 29th. If it doesn’t close on April 29th, the seller will fine my home buyers $100 per day for every day after the 29th. After speaking with their tax consultant and finding out that they qualify for both the Federal and State Tax Credit, they decided that a fine would be worth paying in order to get an additional $10,000 (State) added to the $8,000 (Federal).

My Bay Area home buyers are thrilled that they can get an $18,000 tax credit. Tomorrow they signs their loan documents and the bank will fund the loan on the 30th and record on May 3rd. Congratulations Mike and Flora, good timing!

Since it is late in the game for those home buyers who have not been accepted nor have a ratified contract, the only solution for those wanting to take advantage of getting the $18,000 tax credit would be to place an offer on a traditional home sale where the seller can accept your offer quickly or possibly with a bank owned, foreclosed home. Short Sales would be out of the question since until the bank accepts the home buyers offer there is not a ratified contract. And we all know how long it takes to get a Short Sale accepted by the bank.

I strongly recommend that Sacramento home buyers not let this one slip through your fingers. This is a terrific opportunity for Sacramento home buyers. It’s not everyday you are given an $18,000 tax credit.

Authored by Gena Riede | Discussion: Comments »

Home Buyer Tax Credit Ends in 9 Days!

April 21st, 2010 categories: Real Estate Tips

Only 9 Days Sacramento home buyers, the Federal tax credit ends in 9 days on April 30, 2010. You MUST be in a binding contract by April 30, 2010 and you have until July 1st to close escrow in order to get the home buyer tax credit.

There was a change increasing the home buyer’s adjusted gross income effective Nov. 7, 2009 to $125,000 for a single home buyer and $225,000 for married couples. This new law increasing the gross income for home buyers states that first time home buyers (those buyers who have not owned a home in the past 3 years) may obtain a home buyer tax credit for $8,000 or $4,000 if married and filing separately. Also, included are move-up home buyers who sold their primary residence they lived in for the past 5 of 8 years to get $6,500 if single and $3,250 for married filing separately.

Remember to use IRS Form 5405 when filing and know there is a cap of $800,000 on the price of the house or condo in order to qualify for this tax incentive.

For home buyers who purchased homes and condo prior to November 7, 2009 the income adjustment does not apply. Your income level is $75,000 for single and 150,000 for joint fliers.

Due to some home buyers filing and committed fraud, no one is allowed to file electronically if asking for the home buyer tax credit but you must file paper returns, instead. Be sure to use IRS form 5405

Don’t waste anymore time, run don’t walk to an experienced Realtor ®. As of today, you ONLY have 9 days left. It takes time to get your offer on a house or condo approved by the home seller. No one knows if this tax credit will be extended and as a home buyer you don’t want to miss out on this great savings.

Never fear, there is the CA First Time Home Buyer’s Tax Credit that is suppose to begin May 1, 2010 for California home buyers.

Start your home search on Sacramento MLS and get the latest homes or condos for sale right into your email. Home buyers can also call or email Gena to set-up your home search for you. Let’s get started before you miss out on the home buyer and First Time Home Buyer tax credit.

As a Sacramento Realtor ® I always recommend home buyers contact their tax accountant to double checked if you qualify for the home buyer tax credit.

Other Related Articles:

Sacramento Home Buyers Find Homes in Multiple Offers

This Sacramento Realtor Doesn’t Agree With HUD

A Look At Real Estate in 2010

Is Your Condominium FHA Approved?

New Facts About Home Buyer Tax Credit

Authored by Gena Riede | Discussion: 1 Comment »

Money Saving Tip For Homeowners

March 12th, 2010 categories: Real Estate Tips, Sacramento Real Estate Videos

Right now the rain has stopped but this is something that everyone who owns their own home and those who are renting should do. Otherwise, it could cost you some major money down the line and who doesn’t want to save money?

We have been having some great Spring weather but as you know, rain is still lurking so check out those downspouts next time it rains to make sure you have a steady flow. Rust means that there’s a backup where the water has been sitting which is usually do to some clogged drains. Replacing rain gutters isn’t cheap nor is replacing the wood around your roof so take this real estate tip and keep up with the maintenance on your home.

There are so many new homeowners today and I will continue to try and give you some good advice so that you can avoid paying for repairs.

Congratulations to all those home buyers who recently bought their first homes. And for those home buyers who are anxiously awaiting to find their new home, remember that home ownership comes with the responsibility of maintaining your house and making repairs.

*** Don’t Forget 2 IMPORTANT things this weekend- Sunday it is TIME TO SPRING FORWARD and CHANGE THE BATTERIES IN YOUR SMOKE DETECTORS !

UPDATE: St. Patrick’s Day Parade, Saturday, March 13th in Old Sac with Celtic Festival in Waterfront Park on 1000 Front Street from noon till 6 pm and the parade this year will start on 2,d and L Street at 1:00 PM. Remember, all Old Sacramento streets will be closed from noon till 3PM

Other Homeowner Tips:

Do You Want To Save Money?

Kitchen Tip That Can Save You Money

Want to Know A Real Estate Tip To Save You Money?

Exciting NEWS For Home Buyers!

Authored by Gena Riede | Discussion: Comments »

Sacramento Home Buyers Find Homes in Multiple Offers

February 8th, 2010 categories: Real Estate Tips

Contract-Disclosures_edited-1 Believe it or not, even though we are in some economic troubling times, many Sacramento homes are in multiple offers. This is not the time to give low ball offers, unless you enjoy being rejected time and time again.

Sacramento home buyers are competing with investors who are primed with either all cash offers, quite closing dates and no contingencies for home inspection. The banks will go for these offers in a heart beat and leave the others dangling.

It’s imperative that all home buyers have their ducks in a row. If you are obtaining a loan, make sure you have your lender approval letter, copies of your bank statement proving where your down payment is coming from and put down a sizable amount.

I still receive calls from home buyers who have not seen a Lender and think it’s not a problem getting a loan. Let me tell ya, it’s hard to get a loan these days. I haven’t seen one of my home buyers who have not had to jump through hoops to get a loan. They have had excellent credit but the banks are difficult and the underwriters are nearly impossible. Don’t take getting a loan for granted. Do your homework and get a Lender letter of approval BEFORE looking at homes for sale.

Experienced Realtor’s ® work with experienced Lenders so do talk to your Realtor ® and get a referral to a Lender who can actually get a loan for you. Can’t begin to tell you how many times a home buyer has come to me with their own Lender only to find out that their Lender couldn’t get the job done and the Lender I work with has to save the day at the last minute! Do yourself a favor and ask your Realtor ® for a Lender referral.

If the house or condo is one that you have been watching for sometime on MLS, and you have seen the price go down remember so have other buyers. If the neighborhood is one that is sought after. you won’t be the only one making an offer.

Short Sales take anywhere from two weeks to six months to be approved so if you are a toast watcher, either change your attitude or don’t get involved with Short Sales. Many of the listing agents have sellers who require that your good faith deposit check be sent to Title and cashed before the seller accepts your offer and your offer is sent to the bank for approval. If that bothers you, then that house is not for you. I think you will see more Short Sale agents requiring this as time goes on.

With the $8,000 Federal tax credit for first time home buyers and the $6,500 tax credit for repeat buyers we are seeing quite a few home buyers in the real estate market who realize they will pay less each month to own their own home rather than pay rent.

Recently, I heard that Governor Arnold Schwarzenegger was proposing a $10,000 tax credit for all buyers. This will certainly open up the market for even more home buyers.

Make sure you are working with an experienced Realtor ® and you have your own representation. Home buyers do not pay to be represented. The State of California actually requires each home buyer to sign an Agency Disclosure to make sure that you, as a home buyer understand the difference between Single Agency and Dual Agency. It is never a good idea for a home buyer to be represented by a builder or by a listing agent. The agent at the home builder site represents the builder, not you. And the listing agent represents the seller, not you.

Remember, real estate is LOCAL. Just because someone on the news talks about real estate, or your friend in Texas talks about real estate doesn’t mean that is the way it is here in Sacramento or in a neighborhood in Roseville or Elk Grove. Talk to your Realtor ® and find out the scoop for the area and type of home or condo you are looking for before you buy.

Happy house hunting with your eyes wide open!

Related Home Buyer Tip Articles:

What Does Short Sale Mean

You Can’t Be A Toast watcher and Buy a Short Sale

Sacramento Home Buyer Tip

Sacramento Home Buyers Buying Homes Be Sure to Read This

Authored by Gena Riede | Discussion: Comments »

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